Business challenge

Inconsistency in how performance data was collected and qualified led to unacceptable variance in manner and pace of comp to independent contractors

Erroneous determinations (regarding which reps met what compensation eligibility criteria) routinely led to over-payment to some and delayed payment to others

Unreliable and uneven application of comp eligibility meant that the client struggled to meet process target timelines and schedules

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The Genpact solution

Develop and deployed a validation tool to identify, aggregate, and integrate data from different business units, thus ensuring data consistency. The team also implemented an Incentive Compensation (IC) administration tool that:

Computes incentives for the various IC pay plans

Computes IC plans by business units and product lines

Compares compensation results

Compares output to scorecard parameters

Business impact

The company reduced risks and data errors in the system to reduce costs, increase process speed, and reduce over-payments. Automation helped improve the efficiency of IC operations, which not only accelerated IC processes but also enabled the company to reallocate its IC admin resources to more strategic functions.

Result: The company now has a simpler process and smarter reporting using an automated IC tool to calculate and validate compensation for 6,500 reps.